HCM City (VNA) – Bus owners in the city’s transport co-operative sighed with relief after the city People’s Committee approved an additional 122 billion VND (7.62 million USD) in bus subsidies on Monday.
Earlier in the year, the city council committee approved 450 billion VND (28.12 million USD) for the bus system this year.
The city People’s Committee urged the Department of Transport and Public Works to strengthen management with the aim of increasing income and cutting fuel and labour costs.
The city said costs could be cut by 13 billion VND (812,500 USD) each year.
According to co-operative members, the extra subsidy was a temporary solution to maintain the city bus system, adding that a readjustment of subsidy and ticket prices would be the long-tern solution.
Duong Hong Thanh, from the standing committee of the city’s People’s Committee, said passengers would pay an additional 1,000 VND for each bus ticket beginning in May.
Last week, dozens of buses were idle because of soaring fuel prices.
Nguyen Thi Ngoc Sang, a member of Binh Minh Bus Co-operative, said every day one bus required an additional 300,000 VND - 400,000 VND to maintain operations on the Mien Dong Bus Station - Mien Tay Bus Station route.
According to Nguyen Van Ky, vice chairman of Quyet Tien Bus Cooperative, his cooperative had asked the city Department of transport and Public Works to reduce from 200 to 180 trips a day on the Cu Chi -Go Dau and An Suong - Ben Thanh routes.
Phung Dang Hai, chairman of HCM City ’s Alliance of Transport cooperatives, reported that since the jump in fuel on February 26, the alliance’s six members had refused to operate.
The alliance, with nearly 1,000 buses, had had to spend a total of 300 million VND (18,750 USD) to subsidise fuel costs, Hai said.-Enditem
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